PAPA JOHN'S INTL INC (PZZA) Stock Fundamental Analysis
USA - NASDAQ:PZZA - US6988131024 - Common Stock
41.08 USD
-1.74 (-4.06%)
41.26 USD
+0.18 (+0.44%)
Taking everything into account, PZZA scores 5 out of 10 in our fundamental rating. PZZA was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. While PZZA is still in line with the averages on profitability rating, there are concerns on its financial health. PZZA is not valued too expensively and it also shows a decent growth rate. PZZA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PZZA had positive earnings in the past year.
In the past year PZZA had a positive cash flow from operations.
Each year in the past 5 years PZZA has been profitable.
PZZA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PZZA has a better Return On Assets (8.39%) than 80.30% of its industry peers.
PZZA's Return On Invested Capital of 15.93% is amongst the best of the industry. PZZA outperforms 83.33% of its industry peers.
PZZA had an Average Return On Invested Capital over the past 3 years of 19.10%. This is significantly above the industry average of 10.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.39% | ||
| ROE | N/A | ||
| ROIC | 15.93% |
ROA(3y)8.86%
ROA(5y)6.36%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)19.1%
ROIC(5y)18.49%
1.3 Margins
The Profit Margin of PZZA (3.58%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of PZZA has grown nicely.
With a Operating Margin value of 5.95%, PZZA perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
In the last couple of years the Operating Margin of PZZA has grown nicely.
PZZA's Gross Margin of 27.24% is on the low side compared to the rest of the industry. PZZA is outperformed by 78.79% of its industry peers.
PZZA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.95% | ||
| PM (TTM) | 3.58% | ||
| GM | 27.24% |
OM growth 3Y-6.37%
OM growth 5Y42.55%
PM growth 3Y174.07%
PM growth 5YN/A
GM growth 3Y-3.81%
GM growth 5Y-0.4%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PZZA is creating value.
Compared to 1 year ago, PZZA has more shares outstanding
PZZA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PZZA has been reduced compared to a year ago.
2.2 Solvency
PZZA has an Altman-Z score of 3.70. This indicates that PZZA is financially healthy and has little risk of bankruptcy at the moment.
PZZA's Altman-Z score of 3.70 is amongst the best of the industry. PZZA outperforms 84.85% of its industry peers.
PZZA has a debt to FCF ratio of 13.58. This is a negative value and a sign of low solvency as PZZA would need 13.58 years to pay back of all of its debts.
The Debt to FCF ratio of PZZA (13.58) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.58 | ||
| Altman-Z | 3.7 |
ROIC/WACC2.12
WACC7.5%
2.3 Liquidity
A Current Ratio of 0.82 indicates that PZZA may have some problems paying its short term obligations.
PZZA has a Current ratio (0.82) which is comparable to the rest of the industry.
A Quick Ratio of 0.69 indicates that PZZA may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.69, PZZA is doing worse than 62.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
PZZA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.35%.
The Earnings Per Share has been growing by 14.87% on average over the past years. This is quite good.
PZZA shows a decrease in Revenue. In the last year, the revenue decreased by -3.57%.
The Revenue has been growing slightly by 4.93% on average over the past years.
EPS 1Y (TTM)-34.35%
EPS 3Y-11.8%
EPS 5Y14.87%
EPS Q2Q%-25.58%
Revenue 1Y (TTM)-3.57%
Revenue growth 3Y-0.15%
Revenue growth 5Y4.93%
Sales Q2Q%0.27%
3.2 Future
PZZA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.87% yearly.
Based on estimates for the next years, PZZA will show a small growth in Revenue. The Revenue will grow by 6.01% on average per year.
EPS Next Y-25.05%
EPS Next 2Y-2.2%
EPS Next 3Y4.35%
EPS Next 5Y17.87%
Revenue Next Year2.97%
Revenue Next 2Y1.94%
Revenue Next 3Y1.99%
Revenue Next 5Y6.01%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.88, the valuation of PZZA can be described as rather expensive.
PZZA's Price/Earnings ratio is a bit cheaper when compared to the industry. PZZA is cheaper than 60.61% of the companies in the same industry.
PZZA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.35 indicates a rather expensive valuation of PZZA.
PZZA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PZZA is cheaper than 60.61% of the companies in the same industry.
PZZA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.88 | ||
| Fwd PE | 18.35 |
4.2 Price Multiples
PZZA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PZZA is cheaper than 60.61% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PZZA is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.81 | ||
| EV/EBITDA | 10.65 |
4.3 Compensation for Growth
PZZA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.61
EPS Next 2Y-2.2%
EPS Next 3Y4.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.30%, PZZA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.35, PZZA pays a better dividend. On top of this PZZA pays more dividend than 91.67% of the companies listed in the same industry.
PZZA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
5.2 History
On average, the dividend of PZZA grows each year by 8.81%, which is quite nice.
PZZA has been paying a dividend for at least 10 years, so it has a reliable track record.
PZZA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.81%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
81.41% of the earnings are spent on dividend by PZZA. This is not a sustainable payout ratio.
PZZA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP81.41%
EPS Next 2Y-2.2%
EPS Next 3Y4.35%
41.08
-1.74 (-4.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners112.39%
Inst Owner Change0.84%
Ins Owners1.1%
Ins Owner Change0.63%
Market Cap1.35B
Revenue(TTM)2.06B
Net Income(TTM)74.74M
Analysts73.91
Price Target52.85 (28.65%)
Short Float %10.67%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
Yearly Dividend1.86
Dividend Growth(5Y)8.81%
DP81.41%
Div Incr Years4
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.81%
Min EPS beat(2)0.08%
Max EPS beat(2)21.54%
EPS beat(4)3
Avg EPS beat(4)11.03%
Min EPS beat(4)-1.65%
Max EPS beat(4)24.17%
EPS beat(8)6
Avg EPS beat(8)10.84%
EPS beat(12)7
Avg EPS beat(12)6.12%
EPS beat(16)9
Avg EPS beat(16)5.49%
Revenue beat(2)1
Avg Revenue beat(2)-0.26%
Min Revenue beat(2)-1.05%
Max Revenue beat(2)0.53%
Revenue beat(4)2
Avg Revenue beat(4)0.06%
Min Revenue beat(4)-1.05%
Max Revenue beat(4)0.85%
Revenue beat(8)2
Avg Revenue beat(8)-2.25%
Revenue beat(12)2
Avg Revenue beat(12)-2.54%
Revenue beat(16)3
Avg Revenue beat(16)-2.23%
PT rev (1m)-0.7%
PT rev (3m)7.72%
EPS NQ rev (1m)-3.42%
EPS NQ rev (3m)-4.88%
EPS NY rev (1m)-1.55%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.88 | ||
| Fwd PE | 18.35 | ||
| P/S | 0.65 | ||
| P/FCF | 23.81 | ||
| P/OCF | 10.23 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.65 |
EPS(TTM)1.72
EY4.19%
EPS(NY)2.24
Fwd EY5.45%
FCF(TTM)1.73
FCFY4.2%
OCF(TTM)4.01
OCFY9.77%
SpS63.65
BVpS-13.19
TBVpS-15.53
PEG (NY)N/A
PEG (5Y)1.61
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.39% | ||
| ROE | N/A | ||
| ROCE | 20.74% | ||
| ROIC | 15.93% | ||
| ROICexc | 16.87% | ||
| ROICexgc | 19.53% | ||
| OM | 5.95% | ||
| PM (TTM) | 3.58% | ||
| GM | 27.24% | ||
| FCFM | 2.71% |
ROA(3y)8.86%
ROA(5y)6.36%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)19.1%
ROIC(5y)18.49%
ROICexc(3y)20.56%
ROICexc(5y)20.67%
ROICexgc(3y)23.77%
ROICexgc(5y)24.21%
ROCE(3y)24.87%
ROCE(5y)24.07%
ROICexgc growth 3Y-9.79%
ROICexgc growth 5Y44.21%
ROICexc growth 3Y-9.04%
ROICexc growth 5Y45.25%
OM growth 3Y-6.37%
OM growth 5Y42.55%
PM growth 3Y174.07%
PM growth 5YN/A
GM growth 3Y-3.81%
GM growth 5Y-0.4%
F-Score6
Asset Turnover2.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.58 | ||
| Debt/EBITDA | 3.88 | ||
| Cap/Depr | 105.19% | ||
| Cap/Sales | 3.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.36% | ||
| Profit Quality | 75.62% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 3.7 |
F-Score6
WACC7.5%
ROIC/WACC2.12
Cap/Depr(3y)124.88%
Cap/Depr(5y)117.36%
Cap/Sales(3y)3.61%
Cap/Sales(5y)3.22%
Profit Quality(3y)80.41%
Profit Quality(5y)690.68%
High Growth Momentum
Growth
EPS 1Y (TTM)-34.35%
EPS 3Y-11.8%
EPS 5Y14.87%
EPS Q2Q%-25.58%
EPS Next Y-25.05%
EPS Next 2Y-2.2%
EPS Next 3Y4.35%
EPS Next 5Y17.87%
Revenue 1Y (TTM)-3.57%
Revenue growth 3Y-0.15%
Revenue growth 5Y4.93%
Sales Q2Q%0.27%
Revenue Next Year2.97%
Revenue Next 2Y1.94%
Revenue Next 3Y1.99%
Revenue Next 5Y6.01%
EBIT growth 1Y-23.35%
EBIT growth 3Y-6.51%
EBIT growth 5Y49.57%
EBIT Next Year43.01%
EBIT Next 3Y17.52%
EBIT Next 5Y19.41%
FCF growth 1Y-32.36%
FCF growth 3Y-33.5%
FCF growth 5Y7.27%
OCF growth 1Y-20.75%
OCF growth 3Y-16.73%
OCF growth 5Y11.55%
PAPA JOHN'S INTL INC / PZZA FAQ
What is the fundamental rating for PZZA stock?
ChartMill assigns a fundamental rating of 5 / 10 to PZZA.
What is the valuation status of PAPA JOHN'S INTL INC (PZZA) stock?
ChartMill assigns a valuation rating of 4 / 10 to PAPA JOHN'S INTL INC (PZZA). This can be considered as Fairly Valued.
What is the profitability of PZZA stock?
PAPA JOHN'S INTL INC (PZZA) has a profitability rating of 6 / 10.
What are the PE and PB ratios of PAPA JOHN'S INTL INC (PZZA) stock?
The Price/Earnings (PE) ratio for PAPA JOHN'S INTL INC (PZZA) is 23.88 and the Price/Book (PB) ratio is -3.12.
How financially healthy is PAPA JOHN'S INTL INC?
The financial health rating of PAPA JOHN'S INTL INC (PZZA) is 3 / 10.